FAST FIVE: "Retaliation Is Imminent": Here Are China's "Nuclear" Trade War Options
I believe Beijing is selecting retaliation targets and approaches, minimizing damage to itself, and not weakening confidence in China's opening up.” (18 May) “Trump delays EU, Japan auto tariffs for 6 months since there is little chance of reaching a China-US trade deal in six months.
The restrictions could apply to US smartphones, servers, autos, pharmaceuticals, or distribution of Hollywood movies and series, as long as the action would not incur significant domestic economic and employment costs.
For example, the recent legal case filed by Chinese airlines with Boeing could be viewed as a move in this direction.
(“China recalls giant pandas from US zoo amid ongoing trade war between countries,” Mirror, 17 May) In addition to offensive tactics, China is also widely expected to play more “defense”, and prop up its economy for the duration of the trade war.
Meanwhile, China has rolled out some targeted monetary and fiscal measures since President Trump's 5 May tweet, and has hinted at other strategies and measures, including: Indigenous innovation: During this week's tour in Jiangxi, President Xi stressed the need for self-reliance and emphasised that “technological innovation is the root of life for businesses.” China must have its own intellectual property and core technologies to produce products with core competitiveness that won't be beaten in intensifying competition, he said.